US$523 million for Bolivia

CAF approvals to date total US$4.60 billion.

Enrique García, president & CEO, held a press conference to report on the activities of the multilateral organization in 2005.

In Bolivia the highest percentage of approvals was concentrated on creating infrastructure networks to support competitiveness, local and regional integration, along with sustainable development and institutional strengthening.

A report on activities in 2005 was offered at a press conference in Caracas by CAF President & CEO Enrique García, who announced that this year the Corporation had achieved a record US$4.60 billion in approvals, including a total of US$523 million for Bolivia.

Infrastructure networks to support regional integration and competitiveness

García emphasized that the priorities in Bolivia were centered on operations related to the development of infrastructure in the transport sector, and improvement of the power service in various localities, as a contribution to the country’s productivity and competitiveness. This area includes financing for the connection with Brazil via the Roboré-El Carmen and El Carmen-Arroyo Concepción road sections.

"CAF responded to requirements in areas of crucial importance for the development of the country such as transport infrastructure, assigning US$289 million to contribute to the government's objective of improving links between provincial capitals, international integration with neighboring countries and strengthening the Bolivian transport sector. All these operations are aligned with the objectives of regional sustainable development of the South American Regional Infrastructure Integration Initiative (IIRSA)," García said. “The financing granted in this area is a contribution to improving aspects of the nation's competitive profile, by facilitating road links that will reduce transport costs, enabling the productive sector to offer its products at lower cost, and integrate more people into the development process," he added.

The funds assigned under this line of action will improve the quality of life of the inhabitants of the benefited areas by generating skilled and unskilled jobs, with a strong multiplying effect on the rest of the productive sectors.

Also in the infrastructure area, additional operations were approved for US$32 million to expand coverage of electricity services between Caranavi and Trinidad by building a 374-km long, 115-Kv power transmission line, which will improve the reliability of the power supply, reduce polluting emissions through the use of liquid fuels, and generate tax savings by reducing the value assigned to subsidies on diesel for power generation.

To strengthen the competitiveness of the productive and MSME sectors, funds of US$79 million were approved for private investment initiatives for areas such as manufacturing, mining, dairy products processing, and production of non-traditional export products.

In the strategic area of financial systems and capital markets, loans were approved for US$120 million to strengthen the system and SMEs. The funds will be channeled through various financial intermediation institutions for foreign trade operations and working capital.

Contributions to sustainable development and promotion of special CAF programs

The CAF chief executive said that approximately US$3 million in non-reimbursable cooperation funds was approved to stimulate the agendas of human development, equity, governance and competitiveness, in both public and private sectors.

In the governance area, the projects included the Municipal Land Registry Base Survey, Leadership Project, Consensus Building and Constitutional Development, Institutional Strengthening of the Ministry of Basic Services and Public Works, preparation of a Fiscal Decentralization Strategy for the three levels of government, development of Mechanisms for Requesting Information, and the creation of a web portal for the SIRESE General Superintendency.

Also, this year the new Institutional Strengthening Program was implemented, whose purpose is to improve the system of sectoral regulation, reforms, decentralization, civic education and the constituent processes. Other programs that continued were the Governance and Political Management with University Del Valle and George Washington University; Leadership for Transformation, with IDEA Foundation; and Efficient and Transparent Municipalities (MuNet), with the Organization of American States (OAS) and the Canadian International Development Agency.

In 2005, the Competitiveness Support Program (PAC) made significant progress in promoting entrepreneurial capacity and the creation of new enterprises in Bolivia. For the second year in a row, backing was given to the national business plans competition Entrepreneurial Ideas 2005 through training workshops for the competitors on the structuring of ideas and formulation of business plans. CAF also stimulated the project Seed Your Company led by the Neo Enterprise Foundation whose objective is to start the first company incubator in La Paz department.

García also emphasized support for the Cost Bolivia project in favor of developing competitiveness by designing indicators to monitor improvements in the investment climate, as well as proposals to cut paperwork to facilitate doing business in the country.

In the area of Cultural and Community Development, the Corporation supported plans to generate capacities and promote responsibility and social capital. An important effort in this area is the music program in its orchestral, choral and lute sections, together with sports training in Santa Cruz, La Chiquitanía, El Chaco and El Alto. In the area of productive community management, important progress was made on the projects approved, especially in community tourism with the support of the indigenous authorities of Uyuni, Viacha, Tiwanaku and the South of Lake Titicaca. Important work was done to strengthen community development in Calamarca and Morochata in two projects to facilitate and organize the demand for basic public services; particularly health and education. The projects offer training in areas related to these services, with an inter-cultural and gender approach.

Lastly, García said that CAF and various sectors of the country had established, in recent years, a strategic alliance to promote higher levels of development through infrastructure in an effort to sustain their economic activity and improve the living conditions of their inhabitants. In the last five-year period (2001-2005), Bolivia has received loans for a global amount of US$2.61 billion.